Saturday, April 13, 2024

Will Carmax Pay Off My Car Loan

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John Clay Wolfe Made A Purchase Quote On His Radio Show And I Want To Accept His Offer What Is My Next Step

What will Carmax pay for my car?

Go to our homepage and enter your VIN, upload your vehicles pictures, and identify yourself a s radio caller in the comments section. Remind John what he offered you on-air, what day you called, and about what time you called. The GMTV team will put the wheels in motion to get your vehicle picked up and get you paid!

Things To Consider Before Refinancing

  • Log into the online banking at Sign In and browse to the ‘Loan Payoff’ tab. You will be able to download a PDF.
  • Do a three-way phone call with the new lender and a CarMax customer service rep at 1-800-925-3612, which allows the new lender to ask CarMax all the questions necessary to pay off your existing loan.
  • Determine Your Payoff Amount

    It’s a good idea to start out by checking with your lender for guidance and to find out exactly how much you owe. To make it official, get a payoff letter from your lender. This official document states the payoff amount, a date by which the amount is still accurate, and instructions for completing the payment, including acceptable forms of payment or where to wire the money. You may not know exactly when youre going to sell your vehicle, and interest charges will change the amount of your loan daily. Armed with all the details, you wont get caught by surprise.

    Your payoff amount also includes interest you owe until the time you plan to pay off your loan and other unpaid fees. For this reason, it may not be the same as your current balance, which is the amount you currently owe on the car.

    When contacting your lender, it’s also a good idea to ask if they have any suggestions for selling the car while the loan is in place. Your lender might even have a local office where you and the buyer can meet, which can make for a smoother transaction. Topics to ask about include potential prepayment penalties and the estimated processing time for receiving the title after the lien on the vehicle has been released. Specifics will be different depending on the state where you live.

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    How To Pay Off Your Car Loan Early

    Once you weigh out the benefits and drawbacks, you can decide whether its a good idea to pay off your car loan early. If you decide it makes sense for you, youve got a couple options for paying off your loan ahead of schedule.

    One way to pay off your car loan early is to make one lump payment. Contact your lender to find out your car loan payoff amount and ask how to submit it. The payoff amount includes your loan balance and any interest or fees you owe.

    You can also pay more than the minimum amount due each month. Making at least one extra payment on your loan every month, or adding more money to your monthly payment, may help you pay off your car loan early. But if you plan to go this route, ask your lender to specifically apply any extra payment to the loans principal.

    If An Insurance Company Totals Your Car You’re Still Stuck With The Terms Of Your Car Loan

    How To Trade In A Car That Is Not Paid Off Carmax / Trade

    By David Landers

    When the car you drive every day is “totaled” in a car accident, your routine can be turned upside down. To make matters worse, you might end up “upside down” on your car loan too . This article explains what happens when you still owe money on a totaled car. Learn more about:

    • your car’s actual cash value
    • how insurance companies decide a car is a totaled
    • what happens when you total a financed car, and
    • how gap insurance can help.

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    You Will Be Lured Into An Eternal Debt Trap

    Unfortunately, most people will actually not be making their regular car payment on that same car in year 7.

    Around year 5 or 6, theyll get bored with their current ride and trade it in for a new vehicle. Since theyll still be owing on their car loan, theyll roll the remaining balance, called negative equity, into a new car loan, effectively never getting out of debt.

    Some who trade-in for a new vehicle before year 4 or 5 might actually never get out from underwater of their car loan. They NEVER stop owing more than their car is worth!

    You can avoid all the above headache by simply committing to pay off a 7 year car loan way ahead of schedule.

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    Does Carmax Buy Cars With Body Damage

    CarMax reserves the right to refuse a car for any reason, meaning that the price theyll offer you is zero dollars and zero cents. Yikes!

    This doesnt happen too often anymore, but it is a possibility. The company has been known to buy cars with frame damage, body damage, and flood damage though. Just dont expect a big cash offer for such a vehicle.

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    Not Sure If Carmax Auto Finance Is Right For You Consider These Alternatives

    If youre not sure a CarMax Auto Finance loan is right for you, here are some other options to consider.

    • U.S. Bank auto loan: A U.S. Bank auto loan could be good for someone who wants competitive rates on a used-car loan.
    • LightStream auto loan: LightStream may be a good option if you want to buy a new car or a used car from a private party.
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  • Selling To A Private Buyer

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    Youll often get the best price for your car if you sell to a private buyer who wants to own and drive the car. You may even be able to sell it for more than its wholesale value.

    You also can sell without a title if you’re in a hurry. If the buyer trusts you, they can take the vehicle off your hands with the understanding that the title is not yet available. This is risky for the buyer because they may have trouble with vehicle registration or face repossession or stolen car suspicions by law enforcement. However, if the buyer is willing and you document everything, you may be able to hand over the keys, pay off the loan with the sales proceeds, and sign the title over after the lien is released by your lender.

    Beware of fraud when selling to a private party. Accepting only cash is one way to guard against this scenario, but another option is to use a neutral intermediary to make sure the deal goes smoothly. Escrow services such as can facilitate a deal and protect both buyers and sellers. If the buyer doesn’t pay, you keep the title. If you don’t deliver the title and the vehicle, you don’t get the money. The key is to find a third party that is affordable, reputable, and easy to work with.

    When selling to a private party, you may have to visit a state agency to complete the transfer. Most states require the buyer to go to the state agency that administers vehicle titles to register a vehicle and provide a certificate of the title as proof of ownership.

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    What Is A Simple Interest Loan

    Simple interest is a method of allocating monthly loan payments between interest and principal. The amount of your payment allocated to interest is calculated based on your unpaid principal balance, the interest rate on your loan, and the number of days since your last payment.

    ExampleIf we receive a payment and it has been 29 days since your last payment, then you will be charged 29 days of interest on the unpaid principal balance of your loan. The remainder of your payment is credited to principal and reduces the unpaid principal balance on your loan.

    Tip #: Refinance Your Loan

    Depending on when and where you applied for your car loan, you may not have received the best deal. Car dealerships are notorious for having higher interest rates on their loans, and if you didnt shop around beforehand, you may have thought it was a good deal at the time. But over time, you may notice that youre paying a lot more than you want to and that it will continue until the loan is paid off.

    Just because you took out a loan with one financial institution doesnt mean you have to continue to pay your car back through that lender. Refinancing your loan is a great way to help pay your car loan off faster, and its generally easy to do. When you refinance, you can receive a lower interest rate, which will allow you to pay more on the principal and save you hundreds of dollars in interest in the long-term.Rivermarkhas auto loan rates as low as2.49%APR when you refinance your auto loan. Take advantage of refinancing so that you can pay your car loan off even faster.

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    Are There Alternative Options

    There are a few ways that sellers can sell their car without a title. One way is to have the seller or purchaser file for an abandoned title if no proof of ownership can be given. This often requires filing paperwork through the local dmv or other government agencies. This basically lists a vehicle as unclaimed and then allows the new owner to have a new title issued. This can be a time consuming and tedious process.

    You can sell a vehicle in some places outright without a title as well, though it is generally advised to have a notary present, to notify the states vehicle registry, and write up a bill of sale acknowledging the lack of title. If you take these steps it is generally acceptable to sell the vehicle to an individual who can then apply for a new title, though this comes with some liability and can be time consuming.

    SellMax is a great option for selling your vehicle without a title. In most cases, SellMax can make you an offer and buy your car without the title. SellMax specializes in damaged, junk, or troubled cars and has all the tools necessary to take your car off your hands without all that added paperwork. In most cases we can make you an offer and buy your car in the same day.

    Rolling The Difference Into A New Loan

    How To Trade In A Car That Is Not Paid Off Carmax / Trade

    Another choice extended by dealerships is the ability to roll negative equity into a new auto loan. For example, instead of paying the $3,000 owed in the scenario above, you would roll it into the new cars loan.

    However, again, because dealers often quote lower trade-in prices, you end up with more negative equity than you would have otherwise had. Furthermore, adding the extra amount guarantees that you start your new loan with negative equity. If you continue to do this, you will end up in a vicious cycle of always being caught in an upside-down loan.

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    How To Sell An Upside Down Car To Carmax

    Selling an upside-down car is not easy, especially if it is not a trade-in due to the remaining balance. Since the cars value is lower than the remaining loan balance, you will still have to mind about clearing the balance as the lender will not release the car documents until you clear everything. If your car is upside down with $5000, you will have to raise the amount from your savings or take an unsecured loan.

    However, if you do not have a way to raise the balance, selling an upside down car to Carmax remains your most feasible option. Carmax gives you a one no-hassle appraisal offer, allowing you to walk out with payment in your hand. You also do not have to buy a new car with Carmax for them to buy your car.

    If you have a loan balance on your car, Carmax will contact the lien holder to facilitate a payoff. Carmax will need the lien holders name, contact information, account number, and Social Security Number to make the payment on your behalf.

    If you are selling an upside down car to Carmax, the company can include the balance on your financing when you buy from the dealer. In a situation where you are no interested in buying a new car, Carmax will calculate the difference between the loan balance and their offer and request you to pay Carmax directly.

    Shop Around For Trade

    Zach Shefska of Your Auto Advocate says that its important to shop around for trade-in potential while you shop for a new car. Get as many competitive quotes for your trade-in as possible before engaging with the dealer, he says.

    For example, you should get a quote from Carvana, CarMax and any other major used car dealers in your area before discussing your trade-in with the dealer you are going to buy from. Why? Because Carvana and CarMax in particular will offer you a price for your current vehicle whether you buy a new one or not. You can use this price as a baseline for trade-in value and in conjunction with other research you do on pricing.

    Takeaway: Dont settle for the first trade-in value offer you receive.

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    What Happens If I Still Owe Money On A Total Loss Car

    Most people don’t have enough cash to buy a new or used car. Instead, they borrow money from a lender to buy the car and then pay the lender back in monthly installments over several years. So, what happens when you still owe your lender money for a totaled car? The answer depends on:

    • your car’s actual cash value
    • your car insurance, and
    • how much you owe on your car loan.

    How To Protect Yourself If Your Car Loan Is Upside Down

    Will Paying Off My Car Early Tank My Credit Score?

    You do not want to run into trouble when you are upside down. Also, you should make your monthly payments in full and on time to avoid falling behind on your payments. You will not have any trouble with the lender as long as you are making payments on time and as agreed. The challenge is when you fall behind the payments and the lender repossesses your car.

    If you fail to make monthly payments, you will attract additional fees or lose the vehicle. Also, if the lender takes away the vehicle, the remaining balance will become due, putting you in a difficult financial situation.

    If it is possible, you should pay the monthly payments and add a little more every month. The goal should be to make your monthly payments outpace the depreciation of your car and thus, help you build positive equity. You can also opt for gap insurance to protect your finances. Gap insurance protects your finances by paying the difference between the cars value and the amount you owe in case of theft or a total loss.

    In a situation where the dealer offers gap insurance coverage, you should not accept the offer without comparing it with policies from other providers. You could save money by bundling gap insurance with other insurance covers. However, you will need to note that gap insurance will not cover the negative equity if you decide to sell the car.

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    Should You Get A Carmax Pre Approval When Buying A Car At Carmax

    This post may contain affiliate links to products that I recommendand I may earn money or products from companies mentioned in this post. Please check out my disclosure page for more details.

    Do you want to buy a CarMax car? CarMax preapproval is a special financing option that CarMax provides for its customers. CarMax preapproval offers an opportunity to get the best interest rates possible on your purchase.

    However, there are some things that you need to know before getting CarMax preapproved for your next car purchase.

    We will look at what is involved in the process of CarMax preapproval how does it affect your credit score and why should you care whether or not it is harder or easier to get approved through CarMax vs. traditional banks, and lastly, the pros and cons of buying cars from CarMax with CarMax approval.

    Take Care Of Known Mechanical Problems

    Remember, the mechanical and physical condition of your car are big drivers of value. As a result, you should take special care to resolve any issues you already know about, and especially ones that are easy to fix.

    For example, if there is a warning light on the dash, such as a check engine light, the dealer will assume the worst and bid accordingly, says Chris Brown of RateGenius, an automotive refinancing marketplace. However, you may be able to have this resolved easily by having the cars major systems reset at a dealership.

    Brown also says to check whether your car has any current recalls. If so, you should spend the time taking your car into a local dealership where those can be addressed for free. If you dont, the dealership may factor in the extra time and energy required when offering you a specific amount of trade-in value for your car.

    Takeaway: An inexpensive trip to the dealership or auto repair shop could help you get a much higher trade-in value.

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